The deadline for acceptance is 1pm on 29 March
Shares in GKN rose around 2 per cent in early trading after Melrose announced that it has increased its hostile bid for the UK engineering giant to £8.1bn, and also told GKN shareholders that this will be its “final offer”.
The turnaround specialist offered to pay 467p a share for GKN and give its shareholders 60 per cent of the combined group.
In a letter to GKN shareholders, Melrose’s chairman Christopher Miller said: “On the one hand you can join us on a journey of value creation by investing in a UK listed manufacturing powerhouse worth over £10 bn today and receiving £1.4bn of cash.
“On the other hand your board is attempting a hasty fire-sale of GKN businesses before they have been given a chance to reach their potential and with damaging consequences, we believe, for all stakeholders.”
The deadline for acceptance is 1pm on 29 March.
Melrose, which specialises in buying struggling businesses, said its latest offer would not be increased under any circumstances.
GKN has been fighting off Melrose’s advances since mid-January, when it rejected a £7.4bn bid. According to Melrose, its recent attempts to engage in “constructive discussions” with GKN had been blocked.